There is no operating expenses (at least its not asking for that portion)

This is what they are asking for below and i put in what you said and it was incorrect

Prepare an income statement for Delochs first year of operation. DELOCH STEREOS Income Statement Sales revenue $268,000 Cost of goods sold 143,000 Gross margin 125,000 Warranty expense 10,720 Net income $114,280 Prepare a statement of cash flows for Delochs first year of operation. (Cash outflows should be indicated with a minus sign.)

DELOCH STEREOS Statement of Cash Flows Cash flows from operating activities Inflow from customers $268,000 Outflow for warranty expense Outflow to purchase inventory Net cash flow from operating activities $268,000 Cash flows from investing activities Cash flows from financing activities Net change in cash 268,000 Ending cash balance $268,000